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    Federal Reserve Board sees more persistent inflation risk

    Federal Reserve Board warned in a speech Wednesday night that risks were rising Supply chain disruption Inflation could continue to rise longer than the forecaster expected.

    Monthly inflation should fall from the highs observed in the spring, but “there is still a significant risk that supply-related price pressures may last longer than expected,” South Dakota State University said. Federal Governor Michelle Bowman said in a statement prepared for delivery in.Brookings, South Dakota

    On Wednesday, the Ministry of Labor excluded the volatile food and energy categories, so-called core prices. 4% increase in September Year-over-year, consistent with the year-on-year increase reported in August. Year-over-year inflation has risen at the fastest pace in 13 years since May.

    Bowman also quoted a decline in the number of Americans looking for a job with their employer. Difficulty in hiring workers Despite offering higher wages and other benefits as an added factor to potential inflationary pressure.

    “Employers are having a hard time getting the job done,” she said. “It is clear that such a long outage of economic activity has had lasting consequences, and expectations for a smooth resumption of production, transportation and business operations may not be met for some time.”

    Bowman said the slowdown in salary growth witnessed in August and September reflects a limited supply of workers. The increase in the number of people dismissed after being temporarily dismissed last year will make it difficult to fill the employment shortage of about 5 million from February 2020, along with certain challenges faced by small business owners. She said. Said.

    “I don’t think employment will soon return to full pre-pandemic levels for several reasons unrelated to monetary policy stance,” she said.

    Mr Bowman did not mention her view of potential interest rate hikes in the prepared remarks.She said she supported the plan Decelerate the Fed’s $ 120 billion with monthly bond purchases It will be about 8 months from next month.

    “Our asset purchases have been an important part of our response to the economic impact of a pandemic, but they have essentially served that purpose,” she said. Rising asset values, including the housing market, indicate that “the remaining return on the economy from the purchase of assets is likely to outweigh the potential costs.”

    Write to Nick Timiraos

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    Federal Reserve Board sees more persistent inflation risk

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